Beware - Fringe media rumor - Germany to leave Euro?

Quote from Martinghoul:

But that's the thing, the Irish, the Portuguese and the Spanish seem to be doing the right thing. They aren't the Greeks, they ARE paying the piper, albeit too slowly for you. Why aren't you willing, at least, to give them time to deal with their problems? Moreover, the EuroZone will overhaul the Stability and Growth Pact and some better fiscal discipline might still come out of that. Finally, as demonstrated by the US, all ccy unions need time and crises (sometimes as bad as a civil war) to gel into viable long-term economic entities. This is one such crisis. It may end in the dissolution of the EMU or they might come out of it stronger. I am not as pessimistic as you and I don't see why the process necessarily has to end in failure. At the very least, I am willing to grant them a stay of execution.

As to the US, 100% agree. In some ways the US situation is even worse. However, the US seems to have a sponsor, i.e. China and the rest of the EM world, so it's not clear how that story develops.
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The ECB-IMF emergency loan basically saved Europe from Depression. The PIIGS appear to be doing to the right thing with the brief window available. You're right on that. However, talk is cheap and Governments change. The Trillion dollar bailout carries the laggards so the austerity pains aren't felt too deep. The cost of temporarily saving Europe's minor states is further indebtedness of G20 nations that are only marginally more solvent than EU's worst. Printing money doesn't make problems go away. If it were that easy, why not print 50 Trillion and make this whole sovereign-debt/mortgage crisis disappear? When the time comes to bailout a Spain, UK, France or America, the IMF won't have the coin because those major economies are the IMF. So besides the PIIGS, Germany, France, the UK and America have to slash their deficits hard. Or within a few years, they'll be at Greek levels.

Don't get me wrong, I'm not short-euro praying for anarchy. If the PIIGS continue to do the right thing, great, let them be a model to the G7 that really need to get their sh&t together. As we all know, the EU bailout wasn't an altruistic gesture. The G7 arranged it to buy themselves time. Also, when the G7 finally surrender to harsh austerity measures, IMF emergency loans won't be there to soften the blow.
 
And a Zero Hedge about the France story:

http://www.zerohedge.com/article/sarkozy-threatens-pull-france-out-euro

If you were wondering why the market is spooked by rumors that Germany may be returning to the DM, here is actual fact that French President is on the verge of reinstating the franc. And with that, the euro is nothing more than a political toy for Merkel, Sarkozy and whoever the current non-indicted head of the Italian government is, to achieve their political goals. The currency is now dead. Parity coming within a few weeks.

From The Guardian:
http://www.guardian.co.uk/business/2010/may/14/nicolas-sarkozy-threatened-euro-withdrawal

The markets were initially unsettled by news that the French president had threatened to pull France out of the eurozone. The startling threat was made at a Brussels summit of EU leaders last Friday, at which the deal to bail out Greece was agreed. according to a report in El País newspaper quoting Spanish Prime Minister José Luis Rodríguez Zapatero.
http://www.elpais.com/articulo/espa...alirse/euro/elpepiesp/20100514elpepinac_2/Tes

Zapatero revealed details of the French threat at a closed-doors meeting of leaders from his Spanish socialist party on Wednesday.

Sarkozy demanded "a compromise from everyone to support Greece ... or France would reconsider its position in the euro," according to one source cited by El País.

"Sarkozy went as far as banging his fist on the table and threatening to leave the euro," said one unnamed Socialist leader who was at the meeting with Zapatero. "That obliged Angela Merkel to bend and reach an agreement."

A different source who was at the meeting with Zapatero told El País that "France, Italy and Spain formed a common front against German and Sarkozy threatened Merkel with a break in the traditional Franco-German axis."

El País also quotes Sarkozy as having said, according to another of those who met Zapatero, that "if at time like this, with all that is happening, Europe is not capable of a united response, then the euro makes no sense".

Well, an epiphany 10 years late is still better than no epiphany. And, of course as many will say, he who panics first, just may salvage something. Which for most American citizens still infatuated with their currency, may mean very bad news.

http://www.zerohedge.com/article/sarkozy-threatens-pull-france-out-euro

http://www.guardian.co.uk/business/2010/may/14/nicolas-sarkozy-threatened-euro-withdrawal

http://www.elpais.com/articulo/espa...alirse/euro/elpepiesp/20100514elpepinac_2/Tes
 
Quote from Debaser82:

Got to love the French. I've had it with these Germans acting as if they own the Eurozone.

Allons enfants de la Patrie Le jour de gloire est arrivé!

http://www.youtube.com/watch?v=4K1q9Ntcr5g
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Would be interesting if Germany left the EU. It would be like all the 50% of US taxpayers packing up and leaving the US... what would all of the broke Libtards do then? Who could they bleed for "the entitlements they feel they so richly deserve"?
 
Quote from Scataphagos:

Would be interesting if Germany left the EU. It would be like all the 50% of US taxpayers packing up and leaving the US... what would all of the broke Libtards do then?
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Invade Germany.
 
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